Impact of Performance Measurement System on Employees’ Motivation and Work Effort in Organizations Offering Non-Incentivized Compensation Scheme: The Case of Banking Sector
(2023) BUSN79 20231Department of Business Administration
- Abstract
- The study has two purposes: in the setup of heavily regulated industry (banking) and non-incentivized compensation scheme, (1) to investigate separately bankers’ enabling and coercive perceptions of PMS and how they contribute to motivation and work effort; and (2) to explore to what extent the combination of enabling and coercive perceptions of PMS influences motivation and work effort.
The study was based on the online questionnaire, which was distributed using convenience and snowball sampling techniques (N=105). The survey results were further analyzed using the PCA, correlation matrix, and OLS regression in the SPSS software.
The psychology theories suggest that the relationship between management control and personnel performance... (More) - The study has two purposes: in the setup of heavily regulated industry (banking) and non-incentivized compensation scheme, (1) to investigate separately bankers’ enabling and coercive perceptions of PMS and how they contribute to motivation and work effort; and (2) to explore to what extent the combination of enabling and coercive perceptions of PMS influences motivation and work effort.
The study was based on the online questionnaire, which was distributed using convenience and snowball sampling techniques (N=105). The survey results were further analyzed using the PCA, correlation matrix, and OLS regression in the SPSS software.
The psychology theories suggest that the relationship between management control and personnel performance is mediated by psychological constructs, such as motivation (Birnberg, Luft & Shields, 2006). In the subject research, PMS was studied on the basis of Adler and Borys’ (1996) framework of enabling and coercive controls, while self-determination theory was applied to investigate what type of motivation (autonomous or controlled) mediates the link between PMS and work effort.
In opposition to the theoretical perspective, coercive perceptions of PMS were found to affect bankers’ work effort positively and directly, and controlled motivation does not mediate the subject relationship. Neither direct nor indirect link (via autonomous motivation) exists between enabling perceptions of PMS and work effort; though, the perceptions of PMS as enabling have direct positive impact on bankers’ autonomous motivation. Finally, the study discovered that enabling and coercive PMS features must be conceptualized as interdependent rather than opposite sites, as it was revealed that simultaneous perceptions of PMS as both enabling and coercive do not lead to higher effort in comparison to the separate perceptions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9138671
- author
- Kovalova, Alivija LU and Romanyceva, Alina LU
- supervisor
- organization
- course
- BUSN79 20231
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- PMS, Enabling and Coercive Control, Autonomous and Controlled Motivation, Work effort, Banking sector
- language
- English
- id
- 9138671
- date added to LUP
- 2023-09-18 08:54:48
- date last changed
- 2023-09-18 08:54:48
@misc{9138671,
abstract = {{The study has two purposes: in the setup of heavily regulated industry (banking) and non-incentivized compensation scheme, (1) to investigate separately bankers’ enabling and coercive perceptions of PMS and how they contribute to motivation and work effort; and (2) to explore to what extent the combination of enabling and coercive perceptions of PMS influences motivation and work effort.
The study was based on the online questionnaire, which was distributed using convenience and snowball sampling techniques (N=105). The survey results were further analyzed using the PCA, correlation matrix, and OLS regression in the SPSS software.
The psychology theories suggest that the relationship between management control and personnel performance is mediated by psychological constructs, such as motivation (Birnberg, Luft & Shields, 2006). In the subject research, PMS was studied on the basis of Adler and Borys’ (1996) framework of enabling and coercive controls, while self-determination theory was applied to investigate what type of motivation (autonomous or controlled) mediates the link between PMS and work effort.
In opposition to the theoretical perspective, coercive perceptions of PMS were found to affect bankers’ work effort positively and directly, and controlled motivation does not mediate the subject relationship. Neither direct nor indirect link (via autonomous motivation) exists between enabling perceptions of PMS and work effort; though, the perceptions of PMS as enabling have direct positive impact on bankers’ autonomous motivation. Finally, the study discovered that enabling and coercive PMS features must be conceptualized as interdependent rather than opposite sites, as it was revealed that simultaneous perceptions of PMS as both enabling and coercive do not lead to higher effort in comparison to the separate perceptions.}},
author = {{Kovalova, Alivija and Romanyceva, Alina}},
language = {{eng}},
note = {{Student Paper}},
title = {{Impact of Performance Measurement System on Employees’ Motivation and Work Effort in Organizations Offering Non-Incentivized Compensation Scheme: The Case of Banking Sector}},
year = {{2023}},
}